The Waikato Times. FRIDAY, AUGUST 27, 1937. NEW INDUSTRIES.

Waikato Times, Volume 121, Issue 20283, 27 August 1937, Page 6

The Waikato Times. FRIDAY, AUGUST 27, 1937. NEW INDUSTRIES.

Both the Prime Minister and the Minister of Finance have stated that new industries must be established in order to widen the scope or employment, especially for the younger people. There could be no opposition to the development of industries capable of standing on their own feet and of competing with other products. With the results of excessive nationalism in the economic sphere so apparent in many countries, the Government is hardly likely to folow that course, and by means of very high tariffs, embargoes or quotas provide a measure of employment by raising the cost of living for all sections of the community. There may be some minor differences of opinion in Cabinet itself, for Mr Semple is said to favour the removal of all barriers to trade between the Dominion and the Commonwealth. The development of industries using the natural resources of the country and capable of commanding a fair share of the domestic market, without the dubious aids adopted by many Governments, would tend to provide a more balanced economy, but that development would be too costly if it were made at the expense of the basic industries of the Dominion.

It will be interesting to see along what lines the proposals of the Government run. People who have made a careful study of the matter are confident that in its vast potential reserves of hydroelectricity the Dominion possesses an asset that could be turned to good account. The possibility of manufacturing aluminium has been mentioned. That requires ample and cheap supplies of electricity, and of clay. The should be able to supply both these, but it has no known deposits of bauxite, which is needed as a flux. A very large aluminium undertaking in Scotland will be dependent, it is said, on supplies of bauxite from the Near East, but there are reported to be large quantities available in Australia, and handled in bulk, in much the same way as bulk cargoes are handled on the American lakes, the provision of this necessity should not be costly. This, it is contended, would be a new industry, using local raw materials and power and so benefiting the Dominion. Then, some time ago, there was a proposal to use electric power to obtain supplies of nitrogen from the air for using with certain manures. It might be worth investigating, although the estimated capital cost was high. Doubtless many suggestions have been placed before the Bureau of Industries. Among its duties are the “establishment and development of new industries” and it can make recommendations of a farreaching nature for assisting the undertakings. The Minister of Industries and Commerce probably had some definite plans in view when he introduced the legislation, and as the machinery is available some progress should be assured. Mr Savage has on several occasions mentioned the need for action in cases where imports come from countries where the standards of living are low, and the cost of manufacture is thus reduced. That is an avenue that may repay investigation. On the other hand the Government must avoid incurring any risk with regard to the one overseas market on which not only the primary industries but also the Dominion depends for its economic stability. Those who seek an open market at Home cannot logically close or restrict their own with respect to British goods, and, with a trade agreement still in negotiable form, as Mr Nash explained, this would not be the time for any movement in that direction. It can be taken for granted that both Mr Savage and Mr Nash had some plans in mind when they made their statements, and particulars may be made available during the coming session.